Liability Insurance

Liability insurance protects individuals and businesses against financial liabilities resulting from injuries to any person and property damage. It provides coverage for any legal cost or debt that the responsible party is found legally guilty of. However, this policy does not cover claims for intentional damages, criminal prosecution, and contractual liabilities.

Read more
0
marine

Get right expert advice

Hassle free policy

Speedy Claims

Fast-track your search with instant quotes from top insurers

Get ₹5 Crore insurance cover starting at ₹25,000/year+

Step 1/2
Liability from Product or Service
Property damage or Bodily Injury
Medical & Legal Costs Covered

Get ₹5 crores insurance cover starting at ₹25,000+

Liability from Product or Service
Property damage or Bodily Injury
Medical & Legal Costs Covered
secure-icon We don't spam
Get Updates on WhatsApp
View Plans

Get ₹5 Crore insurance cover starting at ₹25,000/year+

Step 2/2
Fast-track your search with instant quotes from top insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Why is Liability Insurance Required?

The Problem

In today's litigious environment, individuals and businesses confront the constant threat of legal actions and claims filed against them. Whether it's a slip-and-fall accident on business premises or a customer alleging property damage caused by a faulty product, the dread of financial liabilities is ever-present. Such liabilities can swiftly escalate into expensive legal battles without adequate protection, causing substantial financial strain and reputational harm to all parties involved.

The Solution

To reduce these risks and ensure financial stability, the adoption of liability insurance becomes imperative. This specialized insurance coverage acts as a safety net for individuals and businesses. It provides financial security against claims of bodily injury, property damage, and legal expenses, safeguarding their assets and reputation amidst adversity.

Note: Liability insurance is covered under general insurance policies. The scope of liability insurance in India is defined by the Public Liability Insurance Act 1991.

Liability Insurance: Inclusions

The policy provides coverage for the following:

  • Financial expenses incurred due to lawsuits filed against the insured
  • Expenses incurred during investigations and settlements
  • Financial coverage for the fees of investigating officer or hired lawyer after being sued by a third party
  • Medical expenses incurred after an accident on the insured person’s premises that led to a third-party claim
  • Medical expenses incurred after an accident from any of the insured person’s products or during official operations
  • Any loss or damage caused to the third party's property while visiting the office of the insured person

Liability Insurance: Exclusions

The insurance policy does not provide coverage for the expenses arising out of the perils:

  • Willful misconduct and intentional damages 
  • Loss or damage incurred as a result of natural disasters such as cyclones, volcanic eruptions, floods, storms, earthquakes, or windstorms
  • Loss in the market and loss of goodwill
  • Libel and slander
  • Expenses coming out of wrongful eviction, defamation and false arrest
  • Infringement of patents, copyrights, trademarks, trade names, etc.
  • Fines and penalties
  • Transportation of dangerous substances and materials unless opted for a separate kind of coverage 
  • Loss or damage caused due to war, nuclear war

Types of Liability Insurance in India

There are different types of liability insurance policies that are available in India. Some of the most common liability insurance policies are:

Public Liability Cover

Public liability insurance protects individuals and businesses from financial liabilities arising from bodily injury or property damage to third parties (excluding employees) caused by their operations or premises. It is essential for businesses that interact with the public, such as retail stores, restaurants, and service providers.

Professional Indemnity Cover

Professional indemnity insurance, also known as professional liability insurance, offers professionals safeguarding against allegations of errors, negligence or omissions in the services they deliver. Professional liability insurance is crucial for professionals such as doctors, lawyers, consultants, and architects who provide services to clients.

Directors and Officers Liability Insurance

Directors and officers liability insurance safeguard corporate directors and officers from personal financial liabilities arising from claims of wrongful acts or decisions made in their official capacity. It is essential for companies of all sizes and their executives, including directors, officers, and board members.

  • Unlawful acts
  • Releasing confidential information
  • Conflict of interest
  • Failure to maintain the property
  • Gross negligence

Errors and Omissions Insurance

Errors and omissions (E&O) insurance covers professionals against claims of negligence, errors, or omissions in their services. It is necessary for professionals such as insurance agents, real estate agents, financial advisors, and IT consultants.

Employer Liability

Employer liability insurance, often associated with workers' compensation, protects employers from financial liabilities arising from work-related injuries or illnesses that employees suffer. It is mandatory for employers in India to purchase a workmen's compensation policy for their workers.

Product Liability Insurance

Product liability insurance covers manufacturers, distributors, and retailers against claims of bodily injury or property damage caused by defective products they design, manufacture, or sell. It is essential for businesses involved in the manufacturing, distribution, or sale of products.

Third Party Liability Insurance

Third party liability insurance protects individuals and businesses from financial liabilities arising from claims made by third parties for bodily injury, property damage, or other losses caused by the insured's actions or negligence. It is crucial for individuals and businesses in various industries, including construction, transportation, and hospitality.

Who should Buy Liability Insurance?

The liability insurance coverage is designed for companies or individuals who are held legally liable for injuries or other issues mentioned above. This type of insurance policy is most suitable for doctors, hospitals, business owners, etc.

For instance, if a product manufacturing company sells an item that unintentionally causes loss or damage to a consumer, the consumer may file a lawsuit against the manufacturer.

However, if the manufacturing company has obtained a liability insurance policy, the insurer will cover the resulting loss or legal expenses, provided the damage was unintentional. This coverage offers financial security to businesses facing legal claims or lawsuits arising from unintended incidents, ensuring their assets are protected.

How is the Liability Insurance Premium Decided?

The insurance company considers different factors before deciding the premium amount for a liability insurance policy taken by an individual or a company. The first and foremost factor that affects a policy's premium is the amount of risk a company's product can cause. The higher the risk, the higher the premium amount will be.

Other factors that are considered by an insurance company include:

  • The claim history of the insured
  • The approach of the company toward the risk
  • The business record of the company

How to Raise a Claim Under Liability Insurance?

Follow the steps mentioned below to raise a claim under liability insurance:

Step 1: Inform your relationship manager about the incident. 

Step 2: Complete and submit the claim form shared by them.

Step 3: Your provided information will be sent to the insurance company for evaluation and claim registration, resulting in the generation of a claim reference number.

Step 4: The insurer will designate a surveyor upon initiating the claim.

Step 5: Following the survey, the assigned surveyor will specify the necessary documentation.

Step 6: Submit all required documents as instructed by the surveyor and await processing.

Step 7: Upon approval, the insurance company will release the claim funds.

Please note: The insurer will carefully review the terms and conditions of your policy to determine coverage for the claimed incident. Consequently, the decision to accept or reject the claim will be made at the insurer's discretion.

Why Should You Buy Liability Insurance via Policybazaar for Business?

  • Assigned Relationship Manager: Upon commencement, you'll be assigned a dedicated relationship manager, offering ongoing support and advice to safeguard your business from potential risks.
  • 365-Days Claim Support: Our dedicated team of claim experts is available every day of the year, ensuring seamless and expedited processing of your claims 365 days a year.
  • Expert Advisory: Our business risk consultants provide customized guidance for your unique requirements and preferences.
  • Competitive Pricing: Leveraging our broad network of insurer partners, we deliver competitive quotes from top insurers, guaranteeing you the most favorable rates in the market without compromising on service excellence.

FAQs

Liability Insurance Articles
The Public Liability Insurance Act of 1991 comprises 23 sections and one schedule. The act was brought to provide...Read more
31 Mar 2023 by Policybazaar 5173 Views
Public Liability Insurance Act, 1991 is legislation that provides for the protection of individuals from personal...Read more
14 Feb 2023 by Policybazaar 3502 Views
An employers' liability insurance policy provides coverage to employers from financial loss if a worker...Read more
19 Jan 2021 by Policybazaar 7649 Views
Employment Practice Liability Insurance (EPLI) is a type of insurance policy designed to protect businesses from...Read more
12 Apr 2023 by Policybazaar 1703 Views
Product recall liability policy is generally purchased by manufacturers dealing with toys, electronics, beverages...Read more
28 Mar 2023 by Policybazaar 1690 Views
In the context of any developing economy, the Small Scale Sector...Read more
29 Apr 2024 by Policybazaar 44 Views
The Indian government has approved a new program called the...Read more
26 Apr 2024 by Policybazaar 65 Views
The pressure on restaurants to maintain the highest hygiene and...Read more
27 Feb 2024 by Policybazaar 165 Views
Choosing the right insurance policy is a crucial decision for...Read more
22 Feb 2024 by Policybazaar 181 Views
Commercial General Liability (CGL) insurance policy provides...Read more
22 Feb 2024 by Policybazaar 149 Views
Policybazaar for Business - Liability Insurance - Customer Reviews
View all
4.4/5
Based on 24 reviews
4.4
out of 5
Based on 24 reviews
6 users
18 users
0 users
0 users
0 users
4.3 December 17, 2022
Mrityunjay
Reliable And Trustworthy Insurance Plan
I appreciate the transparency and the value for money I received with my liability insurance from Policybazaar website. I highly recommend their services to anyone seeking reliable and trustworthy insurance coverage.
mumbai
4.3 November 30, 2022
Kabir
Satisfying Plan
I reecntly got to know about Liability insurance from policybazaar website, when i visited that i came to know about their affordable premium plans and comprehensive coverage. I imediately bought the plan and now i am satisfied with the purchase.
pune
4.3 November 13, 2022
Keshav
Smooth And Hassle Free
I recently purchasied Liability insuramce from PolicyBazaar website online.The claims process was smooth and hassle-free and they handled everything promptly. It was a great experience. Thankyou.
Bengaluru
4.3 October 27, 2022
Raj
Good Decision
Choosing liability insurance from Policybazaar website was a smart decision. Their customer service team was extremely helpful and guided me through the entire process.Thankyou PB.
Delhi
4.3 October 25, 2022
Raman
Wonderful Customer Support
I recently purchased Liability Insurance from PolicyBazaar website. From start to finish, their service has been outstanding and I am so much satisfied with the kind of coverage and peace of mind I got after purchasing this policy. Thanks Policybazaar.
Visakhapatnam
4.3 October 05, 2022
Gauri Rathi
User Friendly Website
PolicyBazaar's website is user-friendly and easy to navigate. I was able to obtain a quote for LiabilityInsurance effortlessly and the entire process was so easy. The website provided detailed information about the coverage options, allowing me to make an informed decision based on my specific needs.
Jaipur
4 June 09, 2022
Kamal
Online Claims
These days, purchasing product insurance is a necessary in order to protect against any damages produced by the goods. Ours has been claimed over the internet.
Jaipur
4 June 09, 2022
Pankaj
Reasonably Priced
Property insurance is required these days, and we purchased ours from PolicyBazaar. It was reasonably priced and included a variety of coverages for property damage.
Hapur
4.5 June 09, 2022
Neeraj
Good Claims
We were grateful that we had purchased insurance to cover the loss of revenue for both ourselves and our staff. During the corona, it truly saved the day. Policybazaar had given it to us, and we had claimed it.
Karnal
5 June 09, 2022
Ashu
Fantastic Policy
We purchased an employee insurance policy to cover our employees illnesses and injuries. Our employees are now protected, and it is a fantastic policy that we purchased from PolicyBazaar.
Kanpur

Wait! Didn't find what you were looking for?

Our certified business insurance experts are just a call away.

Your call has been scheduled successfully.

icon Expert advice made easy icon
  • Date
  • Time

When do you want a call back?

  • Today
  • Tomorrow
  • 22 May
  • 23 May
  • 24 May
  • 25 May
  • 26 May

What will be the suitable time?

  • 11:00am - 12:00pm
  • 12:00pm - 01:00pm
  • 01:00pm - 02:00pm
  • 02:00pm - 03:00pm
  • 03:00pm - 04:00pm
  • 04:00pm - 05:00pm
  • 05:00pm - 06:00pm

Tell us the number you want us to call on

Your privacy matters. We wont spam you

Call scheduled successfully!

Our experts will reach out to you on Today between 2:00 PM - 3:00 PM

Thank you
Our experts will provide you assistance with your
insurance coverage. Be assured, all your questions
will be answered
top